Investment Securities

6 Months Ended

Jun. 30, 2011

Investment Securities

Investment Securities

6. Investment Securities

The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of June 30, 2011, and December 31, 2010:

	June 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
U.S. government sponsored entities	$	99,943	$	2,204	$	—	$	102,147
State and municipal securities		129,842		609		2,191		128,260
Mortgage-backed securities		1,032,013		16,187		1,593		1,046,607
Other debt securities		9,969		—		7		9,962
Total securities held-to-maturity	$	1,271,767	$	19,000	$	3,791	$	1,286,976
Securities Available-for-Sale
U.S. treasury securities	$	125,534	$	—	$	3,552	$	121,982
U.S. government sponsored entities		210,000		212		360		209,852
State and municipal securities		1,872		6		66		1,812
Mortgage-backed securities		387,670		13,376		726		400,320
Collateralized mortgage obligations		19,824		586		95		20,315
Asset-backed securities		187		—		4		183
Corporate bonds		341,516		603		6,286		335,833
Mutual funds		4,000		—		33		3,967
Preferred stock of government sponsored entities		569		2,814		—		3,383
Trust preferred securities		26,307		191		37		26,461
Other foreign debt securities		57,995		54		683		57,366
Other equity securities		1,468		1,562		—		3,030
Total securities available-for-sale	$	1,176,942	$	19,404	$	11,842	$	1,184,504
Total investment securities	$	2,448,709	$	38,404	$	15,633	$	2,471,480

	December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity	(In thousands)
U.S. government sponsored entities	$	99,921	$	2,639	$	—	$	102,560
State and municipal securities		130,107		—		8,946		121,161
Mortgage-backed securities		600,107		5,230		1,653		603,684
Other debt securities		9,967		—		13		9,954
Total securities held-to-maturity	$	840,102	$	7,869	$	10,612	$	837,359
Securities Available-for-Sale
U.S. treasury securities	$	125,573	$	—	$	6,745	$	118,828
U.S. government sponsored entities		830,269		1,653		6,840		825,082
State and municipal securities		1,875		—		157		1,718
Mortgage-backed securities		627,574		14,854		123		642,305
Collateralized mortgage obligations		24,719		590		115		25,194
Asset-backed securities		245		—		5		240
Corporate bonds		336,476		1,307		5,792		331,991
Mutual funds		4,000		—		73		3,927
Preferred stock of government sponsored entities		569		150		—		719
Trust preferred securities		14,549		58		170		14,437
Other foreign debt securities		38,013		67		646		37,434
Other equity securities		1,468		224		—		1,692
Total securities available-for-sale	$	2,005,330	$	18,903	$	20,666	$	2,003,567
Total investment securities	$	2,845,432	$	26,772	$	31,278	$	2,840,926

The amortized cost and fair value of investment securities at June 30, 2011, by contractual maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

	Securities Available-for-Sale				Securities Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	2,004	$	2,009	$	—	$	—
Due after one year through five years		91,525		90,814		99,943		102,148
Due after five years through ten years		740,719		737,743		21,364		21,474
Due after ten years (1)		342,694		353,938		1,150,460		1,163,354
Total	$	1,176,942	$	1,184,504	$	1,271,767	$	1,286,976

(1) Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $470.4 million and repayments of mortgage-backed securities were $60.9 million during the first six months of 2011 compared to proceeds from sales of 680.9 million and repayment of $117.9 million during the same period a year ago. Proceeds from sales and repayments of other investment securities were $367.5 million during the first six months of 2011 compared to $59.5 million during the same period a year ago. Proceeds from maturity and calls of investment securities were $275.0 million during the first six months of 2011 compared to $1.5 billion during the same period a year ago. Gains of $11.4 million and no losses were realized on sales and calls of investment securities during the first six months of 2011 compared to gains of $8.7 million and losses of $67,000 realized for the same period a year ago.

The temporarily impaired securities represent 30.7% of the fair value of investment securities as of June 30, 2011. Unrealized losses for securities with unrealized losses for less than twelve months represent 1.7%, and securities with unrealized losses for twelve months or more represent 4.6%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rate spreads subsequent to the date that these securities were purchased. All of these securities were investment grade as of June 30, 2011, except two whole loan securities with a par amount at June 30, 2011 of $8.3 million that were rated B and B2. At June 30, 2011, 11 issues of securities had unrealized losses for 12 months or longer and 132 issues of securities had unrealized losses of less than 12 months.

At June 30, 2011, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its debt securities, and has no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery.

The table below shows the fair value, unrealized losses, and number of issuances of the temporarily impaired securities in our investment securities portfolio as of June 30, 2011, and December 31, 2010:

	As of June 30, 2011
	Temporarily Impaired Securities
	Less than 12 months						12 months or longer						Total
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	(Dollars in thousands)
Securities Held-to-Maturity
State and municipal securities	$	90,200	$	2,191		84	$	—	$	—		—	$	90,200	$	2,191		84
Mortgage-backed securities		148,614		1,593		4		—		—		—		148,614		1,593		4
Other debt securities		9,962		7		1		—		—		—		9,962		7		1
Total securities held-to-maturity	$	248,776	$	3,791		89	$	—	$	—		—	$	248,776	$	3,791		89
Securities Available-for-Sale
U.S. treasury securities	$	121,982	$	3,552		1	$	—	$	—		—	$	121,982	$	3,552		1
U.S. government sponsored entities		99,640		360		2		—		—		—		99,640		360		2
State and municipal securities		1,302		66		1		—		—		—		1,302		66		1
Mortgage-backed securities		51,043		504		7		37		1		2		51,080		505		9
Mortgage-backed securities-Non-agency		2,604		73		1		5,309		148		2		7,913		221		3
Collateralized mortgage obligations		—		—		—		847		95		4		847		95		4
Asset-backed securities		—		—		—		183		4		1		183		4		1
Corporate bonds		258,820		5,322		25		19,036		964		2		277,856		6,286		27
Mutual funds		3,967		33		1		—		—		—		3,967		33		1
Trust preferred securities		4,809		37		2		—		—		—		4,809		37		2
Other foreign debt securities		39,317		683		3		—		—		—		39,317		683		3
Total securities available-for-sale	$	583,484	$	10,630		43	$	25,412	$	1,212		11	$	608,896	$	11,842		54
Total investment securities	$	832,260	$	14,421		132	$	25,412	$	1,212		11	$	857,672	$	15,633		143

	As of December 31, 2010
	Temporarily Impaired Securities
	Less than 12 months						12 months or longer						Total
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	(Dollars in thousands)
Securities Held-to-Maturity
State and municipal securities	$	121,161	$	8,946		122		—		—		—	$	121,161	$	8,946		122
Mortgage-backed securities		89,439		1,653		2		—		—		—		89,439		1,653		2
Other debt securities		9,954		13		1		—		—		—		9,954		13		1
Total securities held-to-maturity	$	220,554	$	10,612		125	$	—	$	—		—	$	220,554	$	10,612		125
Securities Available-for-Sale
U.S. Treasury securities	$	118,828	$	6,745		5	$	—	$	—		—	$	118,828	$	6,745		5
U.S. government sponsored entities		578,118		6,840		12		—		—		—		578,118		6,840		12
State and municipal securities		1,718		157		2		—		—		—		1,718		157		2
Mortgage-backed securities		354		4		7		32		1		1		386		5		8
Mortgage-backed securities-Non-agency		—		—		—		10,127		118		3		10,127		118		3
Collateralized mortgage obligations		—		—		—		887		115		4		887		115		4
Asset-backed securities		—		—		—		240		5		1		240		5		1
Corporate bonds		283,376		5,792		27		—		—		—		283,376		5,792		27
Mutual funds		3,927		73		1		—		—		—		3,927		73		1
Trust preferred securities		10,384		170		2		—		—		—		10,384		170		2
Other foreign debt securities		27,254		646		3		—		—		—		27,254		646		3
Total securities available-for-sale	$	1,023,959	$	20,427		59	$	11,286	$	239		9	$	1,035,245	$	20,666		68
Total investment securities	$	1,244,513	$	31,039		184	$	11,286	$	239		9	$	1,255,799	$	31,278		193

Investment securities having a carrying value of $1.47 billion at June 30, 2011, and $1.80 billion at December 31, 2010, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions.

At June 30, 2011, securities purchased under agreements to resell were $255.0 million at a rate of 0.07% and matured on July 18, 2011.